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3 Surprising Reasons To Offer A Subscription

You can now buy a subscription for most consumer products from dog food to flowers. Music subscription services are booming as our appetite to buy tracks is replaced by our willingness to rent access to them. Starbucks now even offers coffee on subscription.

Why are so many companies switching to a subscription business model? The main reason is that recurring revenue increases the value of your business, but there are some other, less obvious, benefits to add a subscription offering to your business.

Posted in Business Planning, Planning, Value Builder

Growth vs. Value: Not all revenue is created equal

When you put together next year’s financial plan, will your growth come from selling more to your existing customers or finding new customers for your existing products and services?

The answer may have a profound impact on the value of your business.

Posted in Business Planning, Value Builder

Six ways to profit from your vacation this summer

Summer is here, and although it may seem strange, now may be the perfect time to increase the value of your company.

 

The most valuable companies are the ones that can run independently of their owner. A buyer will pay a premium for a company that runs on autopilot and levy a steep discount for a business that is dependent on its owner.

Posted in Business Planning, Value Builder

Cash Flow Questionnaire

Gravity Consulting Cash Flow Questionnaire

Posted in Cash

What Should I Consider When Buying a Company?

Projecting Your Business Cash Flow

Introduction

You’re considering whether buying and owning a business is right for you. You may know what your objectives are, what you’re willing to pay and what your income requirements are. But do you know that businesses in the same industry, of the same age, same size and same profitability can have major variations in valuation among them?

This is not to say that one company is overvalued and another isn’t. It is to say that seemingly similar companies may be very different in ways that both affect their value and how they fit with your objectives.

Posted in Business Planning Tagged with:

How To ‘Productize’ Your Service Offerings

How to ‘Productize’ your service offerings

Why turn services into products?

Turning your service offerings into standardized products increases the value of your business. When these standardized products are sold on a recurring basis you can much more easily train staff to both sell the products and perform the services required.  This reduces the dependency of the company on you as an owner, and allows your company to scale much more easily.  Furthermore, by offering products that can be sold on a recurring basis, you’re increasing the value of your business since recurring revenue streams are predictable and repeatable.

Posted in Cash, Value Builder Tagged with: , , ,

How Many Enjoy Watching Sports Without Any Kind Of Scorecard?

How many enjoy watching sports without any kind of scorecard

Yet many private companies only get financial statements, which is a scorecard for their business, once a year.

Performance measurement is the main reason why all companies should prepare and review financial statements at least monthly.

Three main areas should be tracked: Cash flow, profit generation and capital position (i.e. the ability to withstand risks)

Posted in Value Builder

How To Scale Up Your Service Business

Scale-Up-Your-Service-Business

It can be hard to grow a service business. Customers are buying your expertise, and if all you have to sell is your time, the size of your business will always be limited by the number of hours in your day.

There are several ways you can scale your service business. One way is to ‘productize’ your service offerings. You offer a relatively short menu of standardized service offerings, the sales and provision of which can done by your staff. This way your business can become less dependent on you, the business owner.

Posted in Value Builder

5 Ways To Get Your Business To Run Without You

Some owners focus on growing their profits, while others are obsessed with sales goals. Have you ever considered making it your primary goal to set up your business so that it can thrive and grow without you?

A business not dependent on its owner is the ultimate asset to own. It allows you complete control over your time so that you can choose the projects you get involved in and the vacations you take. When it comes to getting out, a business independent of its owner is worth a lot more than an owner-dependent company.

Posted in Financial Modeling, Value Builder